AGL Energy (ASX:AGL) (ASX:AGK) has kicked off a major renewable energy project, constructing a 500-megawatt battery at its former coal power station site at Liddell in the Hunter Valley.
Cannon-Brookes' support
This initiative, supported by investor Mike Cannon-Brookes, takes the energy giant a step closer to its 2030 renewable energy goals. The battery, expected to be operational by mid-2026, aligns with the NSW Government underwriting contracts to promote low-carbon energy solutions.
In addition to AGL's project, other notable green energy ventures include Andrew Forrest's wind farm and an innovative energy storage system at Broken Hill, contributing to the NSW Electricity Infrastructure Roadmap.
These initiatives represent a A$4.2 billion private sector investment and are slated to begin operations from 2028. This development follows the NSW Government's earlier rounds of support for renewable projects, including the Liddell battery.
The NSW Government is also set to announce developments regarding the Central-West Orana renewable energy zone near Dubbo. The ACEREZ consortium, comprising of Spanish firms Acciona, Cobra and Endeavour Energy, will construct and maintain this project for the next 35 years.
This zone's capacity is planned to expand up to 6 gigawatts, with an initial 4.5GW phase. Subject to environmental approvals, the construction is expected to start in early 2025.
AGL chief executive Damien Nicks emphasised the Liddell battery's critical role in achieving around 5 gigawatts of new renewable and firming capacity by 2030.
This move is part of AGL's broader stated commitment to accelerate decarbonisation in response to shareholder pressures. The battery, along with other storage assets, will greatly enhance the company's renewable portfolio.
The NSW Government's recent contracts under the NSW Electricity Infrastructure Roadmap are instrumental in fast-tracking renewable energy generation and storage, contributing significantly to the state's 2030 targets.
Despite these advancements, challenges such as construction costs, grid connections, community acceptance and corporate opposition remain as potential hurdles in the timely replacement of coal power stations.